June 25, 2026 —
Sangamo Therapeutics has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware, marking a major restructuring step for one of the longstanding pioneers in genomic medicine.
The company reported $100 million to $500 million in both assets and liabilities and entered the process with two stalking horse asset purchase agreements already in place. Under the proposed transactions, Eli Lilly would acquire Sangamo’s core technology platforms and certain neurology-related assets, while Astellas Gene Therapies would acquire the company’s Fabry disease gene therapy program.
Sangamo had repositioned itself in 2023 as a neurology-focused genomic medicine company built around two complementary capabilities: epigenetic regulation therapies for serious neurological diseases and novel engineered AAV capsids designed to deliver those therapies to neurological targets. Its proprietary platforms include the zinc finger protein platform, the SIFTER AAV capsid engineering platform, and the MINT genome editing platform.
Sangamo’s SIFTER platform is designed to identify AAV capsids with improved ability to reach the brain and central nervous system. The platform screens large libraries of capsid variants to identify candidates with enhanced delivery to the brain and spinal cord. This work generated proprietary capsids including STAC-BBB, which has shown blood-brain barrier-crossing capability in nonhuman primates and mice after intravenous administration, as well as STAC-102 and STAC-103 for alternative CNS delivery routes.
Under the proposed Lilly transaction, a Lilly subsidiary would acquire substantially all of Sangamo’s core technology assets for $50 million in cash plus assumption of limited post-closing obligations. The assets include the SIFTER, MINT, and ZFP technology platforms; proprietary capsids including STAC-BBB and next-generation variants; the prion disease program; related intellectual property; and certain future milestone and royalty streams from outlicensing agreements.
Astellas Gene Therapies has agreed to acquire Sangamo’s Fabry disease program, including isaralgagene civaparvovec, also known as ST-920, along with its IND, rolling BLA submission, STAAR study data, related intellectual property, and inventory. The transaction includes $25 million in cash at closing and up to $25 million in contingent milestone payments tied to accelerated and full approval outcomes.
Several other assets remain outside the initial Lilly and Astellas transactions and are expected to be separately marketed. These include Sangamo’s hemophilia A program, sickle cell disease program, chronic neuropathic pain program, and Treg platform.
Sangamo’s path to bankruptcy followed a series of financial and strategic setbacks. After shifting toward neurology and AAV delivery technologies, the company lost several major collaboration revenue streams, including agreements with Biogen, Novartis, Kite, and Pfizer. The termination of Pfizer’s hemophilia A collaboration in late 2024 was particularly damaging, eliminating anticipated milestone payments and contributing to a sharp decline in Sangamo’s stock price.
The company also underwent multiple workforce reductions, closed or began winding down facilities, and relied increasingly on external manufacturers for preclinical and clinical supply. As of the Chapter 11 filing, Sangamo had no funded debt but had approximately $39.5 million in general unsecured prepetition obligations and about $5.5 million in cash on hand.
The restructuring underscores the pressures facing gene therapy companies developing capital-intensive platforms and rare disease programs in a difficult financing environment. At the same time, the proposed Lilly and Astellas acquisitions suggest that Sangamo’s core technologies, particularly its engineered AAV capsids, zinc finger tools, and Fabry gene therapy program, continue to hold strategic value for larger genetic medicine developers.
